Suppose that Golddy Plc is planning to sell 20,000 troy ounces of gold at some future date. (a) The standard deviation of changes in the futures price per ounce F is 12.86, that for changes in the spot price per ounce S is 14.38, and the correlation coecient between the spot and futures price changes S,F is 0.80. i. Compute the optimum hedge ratio. ii. If the contract size is 100 troy ounces, how many contracts are needed to hedge the exposure? iii. Should Golddy buy or sell futures contract to hedge this exposure?